Gold just shot up to 1300 Silver had a similar upspike Dollar is weakening against the GBP and EUR. Is Brexit finally falling through? Something with China? Nothing on Bloomberg et alia.
Market Wrap U.S Dollar The dollar index (DXY) ends the week in negative territory as risk on sentiment came back into stock markets and caused safe haven gains in the dollar to reverse. Markets continue to assess whether of not the Fed will raise interest rates in March or June. Until there is clarity in the FED’s position, the dollars long term bullish trend from 2018 will remain on pause. EURO The euro remains weak as continuously poor economic data across Europe shows a significant slowdown in GDP growth. Markets are now completely pricing out any expectation of a rate hike from the ECB later this year, therefore the euro will remain weak until economic data can positively recover. GBP The pound continues to climb on reports that the U.K Parliament are planning to put a bill that categorically doesn’t allow the U.K to crash out of Europe unless there is some sort of deal. The British pound jumped higher this morning on reports that the U.K. might also avoid a No-deal Brexit as Ireland’s Democratic Unionist Party is prepared to conditionally back Prime Minister Theresa May’s Brexit Plan B next week. CAD The Canadian dollar has been unable to foster any gains as the price of Oil has stalled from its recent gains. There are concerns that the demand for Oil will fall in 2019 if global growth slows due to the U.S / China trade war getting worse, and causing further weakness in an already sensitive Chinese and European economies. Any further slowdown in global growth weakening the demand for Oil, causing the Canadian dollar to weaken. However, if Oil production is cut further by OPEC, we are likely to see further strength in Oil and the CAD. JPY CHF The Japanese Yen weakened earlier this week after the Bank of Japan cut their inflation forecasts for 2019, 2020 and 2021 as the bank struggles to get inflation to 2%. The bank said further monetary easing will be needed to get inflation to target, which will weaken the JPY due to the over supply of money in circulation depreciating the value of the YEN. However, the Safe haven flows Into the YEN as risk off sentiment his stocks continues to be a factor that temporarily boosts the currency. Although all gains are short-lived when stocks push higher. AUD NZD The risk sensitive dollars continue to be overshadowed by the risks of the U.S / China trade war getting worst and damaging the Australian and New Zealand economy. We saw weakness in the Aussie dollar as major banks now forecast the Reserve Bank of Australia to cut interest rates to help boost the economy.
Perhaps this? It's always terrifying to see a bank withdrawal request refused. Bank of England denies Maduro's bid to pull $1.2 bln in gold: report https://www.marketwatch.com/story/b...-bid-to-pull-12-bln-in-gold-report-2019-01-25
Goldman gave some bullish forecast on Gold. I think it was something above 1400 within 1 year. Gundlach has predicted dollar weakness for a while. I think he'll be right.
I forecast gold 1 month ago that will break 1300 to me students. Because the last fomc speech they said to not hike rates automaticly every 3 months so i forecast a weak usd due to hike pause.
China has started US selling bonds and buying Gold. Trying to slowly ease their way out of USD dependence. I would expect them to keep doing this as US debt levels continues to rise to uncontrollable levels.
Tell youse students a bwoken clock is right twice a day and on hindsight a bwoken clock is good value for money .